After a summer of celebrating the Queen's Diamond Jubilee and the Olympics, some 56% of people said they are shunning the traditional big night out and will instead be settling down at home, either on their own or with family this New Year's Eve, found Post Office Home Insurance.

Meanwhile, a further one in six (16%) will throw a party at home or go to a bash at a friend's house rather than spend a night out on the tiles.

Of those who said they plan to stay indoors, 15% said this was to save money. However, the research also suggested that a big night out could work out cheaper than throwing a party at home.

Those who do plan to celebrate new year predict they will spend £59 on average, representing a £4 increase compared with similar research last year.

Revellers who are going out on the town typically plan to spend £76, while those hosting a house party expect to splash out a larger amount, at around £100.

Londoners face the biggest bill for celebrating, with the average spend on New Year's Eve expected to reach £85, compared with £50 in the East Midlands.

The findings come as the pressure on squeezed households shows little sign of easing off in the coming months, amid soaring energy bills and increases to food costs and rents.

Paul Havenhand, head of insurance at Post Office, said: "The traditional big night out steps aside for a quiet night in, with many people opting to stay indoors to avoid the crowds, the cold weather and save a bit of money on new year's eve. However, if you are hosting a party at home, our research shows it can be a slightly more costly way of bringing in the new year, with bills mounting up for food, drink and entertainment."